A Decade in U.S.Economy

A Decade in U.S.Economy 

Principles of Macroeconomics – Econ 2105 – Course Project Overview In this course we shall not have a final exam. Instead, you will be required to write a research paper based on a 10-year period (of your choice) in U.S. economic history between 1970 and present (2018). You will collect various macroeconomic data from the decade of your choice, analyze the data, discuss the data in light of basic macroeconomic principles, government policies, and any historical social, economic and political issues that might have influenced the data that you observe. That is, how did these issues and government policies shape the economy? The data you collect would be of key macroeconomic aggregates such as inflation (price levels), employment, national income (GDP), and economic growth rates. In your introduction you will start with overview of historical/current events that occurred in your decade and provide overview of the macroeconomic outlook during that decade. You will employ macroeconomic models to analyze historical events and government policies (monetary and fiscal policies as well as other measures that the government might have implemented – e.g., raising minimum wage, tariffs etc.) in your decade to determine their impact on the economy. In addition, you will analyze macroeconomic data to explain their implication to economic outcomes and forecasting. Finally discuss the effect of macroeconomic trends observed and government policies on businesses and households (i.e., what’s the impact on investment and consumption?). Your paper must address the following: 1. Analysis of macroeconomic data a. Collect annual GDP data and calculate or report the GDP growth rate data for the entire decade b. Choose and discuss at least two relevant events of your decade and explain how they impacted the U.S. economy. c. Collect unemployment and inflation data and analyze the data in relation to output and growth – use macroeconomic economic principles and models for the analysis. d. Collect and analyze interest rates data. In your analysis explain how the interest rate fluctuations would affect inflation, investment, trade, GDP, and the economy as a whole. e. Collect and analyze foreign trade data. Specifically, analyze the imports and exports, connecting observed trends to exchange rates, GDP. Using specific models illustrate how domestic and foreign events (tariffs, oil shocks, trade agreements) could have impacted the level of, and changes in, imports and exports in the USA during your decade. 2. Review government policies (fiscal and monetary) implemented during your decade and discuss the impact of the policies on macroeconomic issues. Here you might review polices on government spending, taxation, subsidies, unemployment benefits, interest rates, money supply etc. Be sure to include a discussion of the impact on households and businesses (consumption and investment). 3. Conclusion – provide a summary of the overall trends and outcomes in your decade by integrating the data, economic models, and historical analysis. In your summary take a position in agreement or disagreement with the measures applied by the USA government in your decade. Your stand/ position should be guided by analysis of observed data and trends, and grounded (supported by) in macroeconomic theory(ies).